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Why 4Q16 Could Be a Reality Test for Century Aluminum

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4Q16 earnings

Century Aluminum (CENX) is expected to release its 4Q16 earnings after the market closes on February 23, 2017.

CENX’s 4Q16 earnings come toward the end of this quarter’s earnings season. Most other aluminum producers, including Alcoa (AA), Norsk Hydro (NHYDY), and Rio Tinto (RIO), have already released their 4Q16 financial results.

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Volatility

Century Aluminum has generally been quite volatile in terms of earnings, and its stock tends to see wild price movements both on the upside and the downside. Its 3Q16 earnings missed consensus estimates by a wide margin. The market reacted negatively to this performance, and the stock fell more than 10% in after-hours trading on October 27, 2016.

Series overview

Century Aluminum has been on a tear over the last couple of months. President Donald Trump’s election fueled a rally in commodity prices, including aluminum. Companies in the metals and mining space (XME) moved to higher price levels, tracking commodity prices.

Having said that, after the phenomenal surge in its stock price, Century Aluminum could face a reality check when it comes to its 4Q16 earnings. Trump’s presidency has helped to revive the market sentiment and boost metals prices. However, in the medium to long term, earnings are key for stock prices.

In this series, we’ll analyze analysts’ estimates for CENX’s 4Q16 earnings. We’ll also see how analysts are rating the stock leading up to its 4Q16 earnings. Continue to the next article for a look at analysts’ estimates for CENX’s 4Q16 revenue.

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